@therealwolf, So when I buy Steem from SBD - Does that create new steems? or I just buy from existing steems? This is not clear
And in last one year we did not print excessive SBDs as prices were always less than 1USD as shown in below picture
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The blockchain can convert SBD for STEEM. This will print new STEEM and burn the used SBD.
https://steemdb.com/labs/conversions
Aha - so u mean when we sell SBD for steem, whether in internal market or on exchanges, then blockchain produces extra steems and burns the SBDs.
No, it doesn't work like that. Selling sbd for steem does not create new steem. There is blockchain operation that converts SBD to Steem at the median feed price (the price that the witnesses report to the blockchain).
By the way I would not use the supply from Coinmarket cap. It is totally inaccurate.
It does not matter -how it is done. But SBD selling creates new steem and that leads to higher than planned inflation.
Regarding CMC - That is the only easy source to know for steem supply for common investors.
pls let me know more reliable source and I will repeat the calculations.
I thank you for taking interest in this issue.
Unfortunately I am not aware of another source for historical data regarding the supply. Coinmarketcap is notorious for not displaying accurate data. For example, right now it shows a circulating supply for steem of 345 million but the actual number is 326 million. @penguinpablo makes a daily and a weekly post with alot of stats for steem (including the available supply).
Selling sbd is not the same as converting it to steem. It is important not to confuse them. One does not create steem and the other one does. The first one is an exchange between two parties on the open or the internal market, the second one is a special blockchain operation carried out by one account (no selling involved).
Converting SBD will only create an amount of steem above the inflation schedule if the steem price is significantly different between the creation and convertion of SBD. This was the case at the end of last year and the begging of this one. By my estimation we have an excess of SBD in the amount 2.6 million which, if converted would equal an increase of about 7.9 million in the steem supply (or about 2.2% more inflation than what is scheduled). Now if the steem price goes to 0.21 USD then we don't have an excess of sbd and there is less pressure to make conversions.
Just to clarify, by excess I mean the amount of SBD that is not supported by the virtual supply to maintain the peg to the US dollar.
One last point, converting SBD to steem does not necessarily mean that there is higher selling preasure for steem. If the steem obtained from the conversion is not sold on the open market then it has no effect on the price.
If we use the data from penguinpablo the available supply went from 277.44 million to 326.19 million in one year which is an increase of 17.57%. Now this is not the inflation rate. To get the inflation rate we need to compare not the avaiable supply but the virtual supply from last year to this year. Unfortunately it doesn't seem that he is keeping track of that so I had to lookup the marketcap of SBD and the price at that time, then I converted it to the equivalent in steem and added it to the available supply from last year to get the virtual supply from back then.
The result is this: the virtual supply went from 293.74 million to 362.43 million which is a real inflation rate of 23.38%.
Note: the virtual supply from this year was obtained from steemworld.org and not by an estimation as I did for the number for a year ago. It's important to use the virtual supply to estimate the inflation rate because it represents both the the current supply of steem plus the amount of steem that can in theory be created by converting all the SBD to steem.
good you did it. and it also gives same number as I came up with using CMC data. Thnx